Argentine Government Slams Car Sector.

Argentine Government Slams Car Sector following a suicide strategy burning years of investments and significant industry growth. Following the former strategy that pushed up sales, this year increased taxation nailed the sector.

Argentina’s auto industry, the third largest in Latin America, has become the latest casualty of government policies that many economists say have pushed the economy into recession amid a toxic mix of double-digit inflation and crippling dollar shortages.

For years, President Cristina Kirchner ’s policies encouraged consumer spending through hefty government-brokered wage increase and by keeping interest rates well below inflation.

But that short-term gain has come with a longer-term cost. Government spending has helped drive up inflation to almost 40%, fueling capital flight and scaring off investment.

Foreign currency reserves have dwindled to $28 billion, while hopes the government might borrow dollars abroad were dashed when a legal dispute with creditors in the U.S. led Argentina to default on some of its debt in July.

Short of dollars, the government began rationing greenbacks to the local car industry earlier in the year, bad news for companies that import about two-thirds of the parts used to make a car in Argentina, while imported vehicles account for just over half of dealership sales.

The situation is so bad that General Motors Co. last month halted car shipments to Argentina from its Brazilian factories until the Kirchner administration frees up dollars to pay for those imports, said a person familiar with the matter.

In October 2014 according to data released by ACARAand ADEFA, the Argentinian Associations of Car Manufacturers and Dealers,total new Car Passengers soldin Argentina have been 50.319, down a huge 41.1% compared with the correspondent month last year.

Year-to-date October sales in Argentina have been 589.146, down 27.3% from the correspondent period last year.

Following the sharp decline, all brands are struggling with heavy double digit losses, starting from the leader, Volkswagen that sold 11.160 vehicles (down 20.3% from October 2013) with a share of 22.2%.

Ford was second with 6.953 units (-29.0%) and Toyota, one of the only two brands reporting a positive Y.o.Y. data, advanced in third place with 6.420 sales (+16.0%).

The other growing brand was Nissan (10th with 616 sales, +10.8%).

Many carmakers have reported real sales collapse. Audi in 17th place was down 89% as BMW (19th). Renault was down 68% (7th with 4.227 sales) and Chevrolet 65.7% (5th with 5.211).

Looking at the report on Car Groups, the October leader was Volkswagen with 22.3 of market share, ahead of PSA with 16.9% and Ford with 13.8%.

As far as model ranking report, the Volkswagen Gol was again on top with 2.976 sales despite losing over 46% of sales. In the recent report about the 100 Global Best-selling cars, the Gol was the worse model Y.o.Y.

Second was the pick-up Toyota Hilux (2.866 sales, +30.7%) few units far from the leader, and third was the Volkswagen Suran (2.128 sales, -3.8%).

Below, you can sort our interactive tables to see data regarding Brands, Groups and Models. Please bear in mind that sales data are subject to adjustments as sources will update their information. This report is updated at the publishing date and will not be modified while the next on this subject will always have the year to date data updated.

Rank Oct

Rank YtD

Brand

Sales Oct

YTD Oct

Oct YoY Var

YTD YoY Var

Share Sep

Share Oct

Share YtD

1

1

Volkswagen

11.160

97.639

-20,3%

-30,1%

18,8%

22,2%

16,6%

2

2

Ford

6.953

81.357

-29,0%

-20,0%

14,5%

13,8%

13,8%

3

7

Toyota

6.420

57.581

16,4%

23,8%

10,9%

12,8%

9,8%

4

6

Peugeot

6.034

63.919

-32,3%

-27,3%

11,6%

12,0%

10,9%

5

5

Chevrolet

5.211

74.805

-65,7%

-39,6%

11,8%

10,4%

12,7%

6

3

Fiat

4.428

78.502

-51,7%

-15,9%

10,7%

8,8%

13,4%

7

4

Renault

4.227

77.251

-68,3%

-35,9%

10,9%

8,4%

13,1%

8

8

Citroen

2.448

25.951

-30,5%

-29,0%

3,9%

4,9%

4,4%

9

9

Honda

849

8.167

-24,7%

-25,3%

2,0%

1,7%

1,4%

10

10

Nissan

616

4.979

10,8%

1,1%

1,2%

1,2%

0,8%

11

11

Mercedes

460

4.750

-52,9%

-47,0%

0,9%

0,9%

0,8%

12

12

Chery

394

3.262

-42,3%

-52,7%

0,7%

0,8%

0,6%

13

13

Iveco

237

1.892

-13,2%

5,8%

0,4%

0,5%

0,3%

14

14

Hyundai

220

1.532

-46,6%

-64,5%

0,4%

0,4%

0,3%

15

15

Kia

204

1.211

-12,1%

-38,5%

0,3%

0,4%

0,2%

16

16

Ram

159

1.200

0,4%

0,3%

0,2%

17

17

Audi

62

1.024

-88,6%

-84,5%

0,1%

0,1%

0,2%

18

18

Jeep

45

635

-78,6%

-75,1%

0,1%

0,1%

0,1%

19

19

BMW

41

542

-89,8%

-85,4%

0,1%

0,1%

0,1%

20

21

Mitsubishi

40

367

-27,3%

-37,4%

0,1%

0,1%

0,1%

21

20

Dodge

31

408

-67,7%

-77,4%

0,1%

0,1%

0,1%

22

24

Alfa Romeo

17

142

-69,6%

-76,5%

0,0%

0,0%

0,0%

23

22

Smart

15

197

-69,4%

-44,7%

0,0%

0,0%

0,0%

24

23

Mini

11

150

-83,8%

-77,3%

0,0%

0,0%

0,0%

25

26

Volvo

9

124

-79,1%

-76,3%

0,0%

0,0%

0,0%

26

29

Chrysler

8

51

-20,0%

-37,8%

0,0%

0,0%

0,0%

27

27

Land Rover

7

109

-87,3%

-71,3%

0,0%

0,0%

0,0%

28

25

Suzuki

6

127

#DIV/0!

12600,0%

0,0%

0,0%

0,0%

29

28

Subaru

3

66

-93,8%

-82,2%

0,0%

0,0%

0,0%

30

30

Porsche

2

46

-91,3%

-78,6%

0,0%

0,0%

0,0%

30

33

SsangYong

2

5

-33,3%

-91,7%

0,0%

0,0%

0,0%

Rank Oct

Rank YtD

Group

Sales Oct

YTD Oct

Oct YoY Var

YTD YoY Var

Share Sep

Share Oct

Share YtD

1

1

Volkswagen

11.224

98.709

-23,0%

-32,6%

19,0%

22,3%

16,8%

2

2

PSA

8.482

89.870

-31,8%

-27,8%

15,5%

16,9%

15,3%

3

5

Ford

6.953

81.357

-29,0%

-20,0%

14,5%

13,8%

13,8%

4

7

Toyota

6.420

57.581

16,3%

23,8%

10,9%

12,8%

9,8%

5

6

GM

5.211

74.805

-65,7%

-39,6%

11,8%

10,4%

12,7%

6

3

FCA

4.925

82.837

-49,8%

-17,3%

11,7%

9,8%

14,1%

7

4

Renault-Nissan

4.843

82.230

-65,1%

-34,5%

12,1%

9,6%

14,0%

8

8

Honda

849

8.167

-24,7%

-25,3%

2,0%

1,7%

1,4%

9

9

Daimler

475

4.947

-53,7%

-46,9%

0,9%

0,9%

0,8%

10

11

Hyundai-Kia

424

2.743

-34,2%

-56,4%

0,7%

0,8%

0,5%

Rank Oct

Rank Ytd

Model

Sales Oct

Sales Ytd

Oct YoY Var.

Share I Half

Share Q3

Share Oct

Share Ytd

1

1

Volkswagen Gol

2.927

30.143

-46,6%

5,5%

4,2%

5,8%

5,1%

2

3

Toyota Hilux

2.866

24.162

30,7%

4,0%

3,9%

5,7%

4,1%

3

9

Volkswagen Suran

2.128

18.384

-3,8%

2,8%

3,5%

4,2%

3,1%

4

8

Peugeot 208

2.080

18.672

-22,4%

3,0%

3,3%

4,1%

3,2%

5

7

Ford Fiesta

2.046

20.810

19,6%

3,8%

2,9%

4,1%

3,5%

6

6

Chevrolet Classic

1.975

22.141

-39,4%

3,6%

4,2%

3,9%

3,8%

7

4

Renault Clio

1.946

24.103

-31,3%

3,5%

5,4%

3,9%

4,1%

8

17

Toyota Corolla

1.711

13.381

38,8%

1,9%

2,6%

3,4%

2,3%

9

10

Toyota Etios

1.699

18.142

87,1%

3,0%

3,2%

3,4%

3,1%

10

5

Ford Ecosport

1.653

22.346

-45,3%

3,8%

3,9%

3,3%

3,8%

11

11

Ford Focus

1.634

17.990

32,2%

2,6%

3,9%

3,2%

3,1%

12

2

Fiat Palio

1.510

24.385

-21,7%

4,0%

4,7%

3,0%

4,1%

13

14

Volkswagen Amarok

1.501

14.360

-15,8%

2,4%

2,4%

3,0%

2,4%

14

13

Ford Ranger

1.473

14.394

-24,4%

2,3%

2,6%

2,9%

2,4%

15

15

Renault Kangoo

1.236

13.923

-33,4%

2,3%

2,4%

2,5%

2,4%

16

45

Volkswagen Up!

1.232

3.371

0,0%

1,2%

2,4%

0,6%

17

20

Peugeot 207

1.221

10.781

-17,3%

1,6%

2,1%

2,4%

1,8%

18

25

Volkswagen Fox

1.092

7.767

1,3%

1,2%

1,3%

2,2%

1,3%

18

12

Fiat Siena

1.092

17.278

-33,1%

3,1%

2,9%

2,2%

2,9%

19

22

Citroen C4

1.080

8.726

38,6%

1,4%

1,4%

2,1%

1,5%

20

19

Peugeot Partner

1.029

11.437

-44,4%

2,0%

1,9%

2,0%

1,9%

21

16

Peugeot 308

1.026

13.766

-33,2%

2,5%

2,1%

2,0%

2,3%

22

23

Volkswagen Voyage

1.014

8.661

-15,1%

1,5%

1,3%

2,0%

1,5%

23

18

Renault Duster

759

11.684

-73,8%

2,4%

1,3%

1,5%

2,0%

24

31

Fiat Strada

748

6.737

6,4%

1,1%

1,0%

1,5%

1,1%

25

35

Volkswagen Saveiro

713

5.831

-1,0%

0,9%

1,0%

1,4%

1,0%

Please consider to purchase the recently published research on this country featuring the recent performance by segment, brand and models (Argentina Car Market Insights).

Wishing to receive a broader picture including the country evolution towards the 2018, you can require the development of the Argentina Car Market Outlook to 202018

Argentina automotive industry represents almost 8.5% of Argentina’s industrial gross production value. The One Million Plan, just launched by the President Macri aim to double production volumes by 2023 enhancing domestic market.

Brazil Automotive Industry outlook in the 2017 is not yet positive albeit the prolonged crisis. Indeed economic perspective are still negative and the sector has not yet bottomed out. Market recovery from 2018

Bahrain Auto Sales had been almost negative during the Q3 keeping the very negative momentum while Bahrain fiscal and financial position become further more vulnerable and expected fiscal austerity will not help the industry.

Argentina Auto Sales kept momentum in Q3 running with a plus 30% speed and projecting the year over the 0.9 million. The finally positive economic environment and the first effects of the recently launched new National Automotive Plan sustain a positive outlook.

Canada best selling cars ranking updated at the end of September 2017 with the Ford F-Series king of the market followed by the Ram Pick up and the Honda Civic, third and best car passengers. The fastest model so far is the Mercedes GLC, up 96%

Vietnamese vehicles market this year is taking a pause after years of fast growth. Indeed, following the positive Q1, market started falling and September, down 23.4%, was the 6th lost in a row. However, the market leader, Toyota, is gaining 12%.

Geely is the fastest growing brand at global level this year the already outstanding performance scored in the previous 7 years. Year to date August sales skyrocket 76.8% thanks to domestic market success of the renovated line up. International sales are falling all over.

Great Wall is losing terrain in the 2017 following the outstanding performance scored in the previous 7 years. At regional level sales are not growing in Asia and Africa.. The best model is the Haval H6, with over 300.000 sales globally.

Best Selling Cars Models in China in the first eight months of the 2017 led by the Chinese Wuling Hongguang with a narrow gap over the Volkswagen Lavida and the Haval H6. Since the start of the year had been launched 29 new vehicles.